PIA Q1 profits slump by 97%
KARACHI: Profit after tax of Pakistan International Airlines (PIA) has declined by 97.6 percent during the first quarter of the current year despite higher net turnover during the period, according to unaudited financial results released at the Karachi Stock Exchange (KSE).
During the first quarter of the year, the earning of the airline declined to Rs 19.42 million as against Rs 833.43 million earned during the first quarter of the year 2004, showing a 97 percent decline. Net turnover for the first quarter has improved by 10.9 percent to Rs 16.18 billion as against Rs 14.59 billion during the corresponding period of previous year. The cost of services also increased by 23.7 percent to Rs 13.83 billion compared to Rs 11.18 billion for the first quarter last year.
The higher cost led to a 31 percent decline in gross profit to Rs 2.3 billion compared to Rs 3.4 billion for the corresponding period last year. The first quarter’s profit from operations declined by 59.7 percent to Rs 839.6 million as against Rs 2.08 billion during the first quarter of previous year.
Profit before taxation of the airlines has declined by 86.5 percent to Rs 188.25 million as against Rs 1.39 billion pre-tax profit during the corresponding period of previous year. staff report